ACAGF (Arcandor AG) Inventory Turnover: 9.33 (As of Sep. 2008)


What is Arcandor AG Inventory Turnover?

Arcandor AG ACAGF Inventory Turnover is 9.33 as of Sep. 2008.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Arcandor AG's Cost of Goods Sold for the six months ended in Sep. 2008 was $18,288 Mil. Arcandor AG's Average Total Inventories for the quarter that ended in Sep. 2008 was $1,801 Mil. Arcandor AG's Inventory Turnover for the quarter that ended in Sep. 2008 was 9.33.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Arcandor AG's Days Inventory for the six months ended in Sep. 2008 was 17.98.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Arcandor AG's Inventory-to-Revenue for the quarter that ended in Sep. 2008 was 0.06.

Arcandor AG  (OTCPK:ACAGF) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Arcandor AG's Days Inventory for the six months ended in Sep. 2008 is calculated as:

Days Inventory =Average Total Inventories (Q: Sep. 2008 )/Cost of Goods Sold (Q: Sep. 2008 )*Days in Period
=1801.199/18287.511*365 / 2
=17.98

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Arcandor AG's Inventory to Revenue for the quarter that ended in Sep. 2008 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2008 ) / Revenue (Q: Sep. 2008 )
=1801.199 / 27772.581
=0.06

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Arcandor AG Inventory Turnover Related Terms

Arcandor AG Inventory Turnover Historical Data

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The historical data trend for Arcandor AG's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Arcandor AG Inventory Turnover Chart

Arcandor AG Annual Data
Trend Dec02 Dec03 Dec04 Dec05 Dec06 Sep07 Sep08
Inventory Turnover
Get a 7-Day Free Trial -4.77 -4.30 -5.83 7.78 9.74

Arcandor AG Semi-Annual Data
Dec02 Dec03 Dec04 Dec05 Dec06 Sep08
Inventory Turnover Get a 7-Day Free Trial 3.64 -4.77 -4.30 -5.83 9.33

Arcandor AG Inventory Turnover Calculation

Arcandor AG's Inventory Turnover for the fiscal year that ended in Sep. 2008 is calculated as

Inventory Turnover (A: Sep. 2008 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Sep. 2008 ) / ((Total Inventories (A: Sep. 2007 ) + Total Inventories (A: Sep. 2008 )) / count )
=18287.511 / ((1792.414 + 1961.106) / 2 )
=18287.511 / 1876.76
=9.74

Arcandor AG's Inventory Turnover for the quarter that ended in Sep. 2008 is calculated as

Inventory Turnover (Q: Sep. 2008 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Sep. 2008 ) / ((Total Inventories (Q: Dec. 2006 ) + Total Inventories (Q: Sep. 2008 )) / count )
=18287.511 / ((1641.292 + 1961.106) / 2 )
=18287.511 / 1801.199
=10.15

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 9.33 mean?
Arcandor AG (ACAGF) has a Inventory Turnover of 9.33 as of Sep. 2008. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Arcandor AG and its competitors.
Is Arcandor AG's Inventory Turnover too high?
Arcandor AG's current Inventory Turnover is 9.33.
How does Arcandor AG's Inventory Turnover compare to ?
Arcandor AG's Inventory Turnover of 9.33 can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Retail - Cyclical company?
A good Inventory Turnover depends on the Retail - Cyclical industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Arcandor AG and its competitors. Arcandor AG's current Inventory Turnover is 9.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcandor AG stock overvalued right now?
Arcandor AG (ACAGF) has a current Inventory Turnover of 9.33. The current Inventory Turnover is 9.33. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Arcandor AG (ACAGF), the current Inventory Turnover is 9.33 as of Sep. 2008. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Arcandor AG Business Description

Comparable Companies
Address Arcandor AG, Theodor-althoff-strac E 2, Essen, DEU, 45133
Arcandor AG is in insolvency. Arcandor was a German handels and tourism company, with the divisions Karstadt, mail-order operation (Primondo) and Thomas Cook.